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A. A. wrote:
> Doug Freyburger wrote:
>
> > There isn't a good linkage between amount down on a
> > property and amount of rent charged.
>
> What I mean by property value is full property value,
> not amount down used for financing. Please assume that
> the property will be bought in cash, not financed.
There isn't a good linkage between full sales price and
rental rates either. Taking down payments and mortgages
into account gives you positive or negative cash flow.
Paying it off in advance gives you larger or smaller return
on investment.
Rental incomes are going to be lower than good mutual
funds percentage wise most of the time. The advantage
is going to be the combination of inflation growing the
rental rates slowly across time and depreciation masking
rental income in the first years.
Stocks do not depreciate, rental units do. Big tax difference.
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Re: Real Estate Monthly Rate of Return
